Report Foreign Earnings Taxed Under New Thai Rules - But With Exceptions

[samtam]

1 hour ago, sandyf said:

Why do some feel the necessity to read something into what gets said that isn't there.

I would have thought that this sentence is quite clear.

"Under these new rules, foreign income earned and remitted within the same or following year will not incur tax."

 

On saying that I wouldn't put much store in articles. Best do nothing until it becomes law and clarified.

 

I think you've answered your own question with "I wouldn't put much store in articles until it becomes law and clarified".

[ujayujay]

Every time, I, naive as I am, hope that some substantive information on expat taxation will come out! But nothing, nada, just nonsense that contradicts the previous information. It doesn't even occur to me to get a TIN!

[OneManShow]

"About as clear as mud. As usual" 

Because they meant it to be. It will be twisted the way they want it anytime. 

[Thingamabob]

'The new policy encourages Thai nationals to repatriate foreign income for investment in Thailand'. Taxing foreign income in this way will not encourage anyone, Thai or foreign, to bring money into Thailand. Completely the reverse I would think. Mind boggling logic.

[wensiensheng]

Well this is interesting. In some ways it’s better for me that the old rule, of which it is a complete 180 degree U turn.

 

Speaking for myself, I hope this comes into being. I’ll need to segregate out any income earned, but not remitted to Thailand in the year it’s earned, but that’s not hard to do. Meantime I can send in what I need from the current years income, tax free.

 

Those who live off rental income from property abroad and/or pension income and send all of it to Thailand as it’s received, should also be delighted. Back to the old favorable tax regime for them.

[wensiensheng]

2 hours ago, tomazbodner said:

It is very simple, in my opinion. Government needs money. Their very narrow view of people being stupid,stipulated them to tax the income of investors to foreign markets, expecting a big payday. But it turned out those people weren't stupid and instead stopped sending any money back to Thailand, causing a big dent in local investment. The government realised people weren't that stupid, and are now reversing the rule (until next election), where foreign income can be brought into Thailand without any taxes, because... well, they are broke...

 

In style of Aseannow: This reversal underscores Thailand's strategic push toward flip-flop legislation, laying groundwork for enhanced economic benefits from population's investment skills and good luck. As finance ministry navigates these uncertain times in search of the next idea to empty residents' pockets, Thailand embraces an "easy in, hard out" approach to replace the "rob them now" approach which achieved the opposite of expected result.

I think you are right. Yesterday’s article where the government directly quoted the poor performance of the Thai stock market as something that needs to be addressed is possible relevant. They probably hope that some of the money that gets brought back gets invested in Thai stocks.

 

Alternatively, maybe the wealthy and influential Thais who felt targeted by the previous change, have quietly lobbied their way into a position that’s suits them better and this new potential rule is a compromise that gives wealthy Thais what they want, without the tax department having to openly back track

[newnative]

    Sticking with my original plan to keep my head down and do nothing until I am clearly forced to do something, such as provide a tax return in order to do my annual renewal.  

[aldriglikvid]

Is this proposal, if one could call it that just yet, supposed to be enacted retroactively, i.e. for 2024, or is it for 2025 and onwards only? 

[Halnodeya]

5 hours ago, crazykopite said:

The rules of tax was always concerning Thais I never understood how foreigners managed to get mentioned it’s clear by this report that it’s the wealthy Thai tax dodgers who they are after !

That's exactly how I interpreted as well, although they threw in a few references to make the whole thing confusing. The goal seems to attract overseas money held by Thai nationals back into Thailand.

It appears that they can bring it over tax free until the end of 2026. 

4 hours ago, Thailand J said:

If i sell US stocks and transfer the proceeds to Thailand, the entire amount will be tax free, if i read the OP correctly. The cost basic was  money from  prior to 2024, and the capital gain is recent income.

I read the article as stipulating Thai Nationals being able to do that... But it did get more confusing as the article went on...

[sandyf]

3 hours ago, samtam said:

 

I think you've answered your own question with "I wouldn't put much store in articles until it becomes law and clarified".

Would appear you are seeing a question mark that isn't there.

[redwood1]

Thai tax rules

 

[jwest10]

3 hours ago, samtam said:

 

It seems even the experts are just as confused (per email from Expat Tax). The head of the Revenue Department needs to sit down, discuss with advisors, make an unambiguous decision, and publish it. We've had 21 months of ambiguity, panic, contradictory information from the Revenue Department staff in different offices, or even the same office, most completely untrained in the nuances of DTAs etc. This Thai Examiner article is certainly more detailed than the BP article, which made a confusing situation more confusing. The writer of that one may need to consider another career choice. But none the less, until an unambiguous decision is made (and enacted in law and published in the Royal Gazette), the result of uncertainty that has ensued is now all too visible to see, through the reduction of tax revenue by THB20 Billion. Until it is, that figure could certainly go northwards.

Oh him!!!

[jwest10]

1 hour ago, newnative said:

    Sticking with my original plan to keep my head down and do nothing until I am clearly forced to do something, such as provide a tax return in order to do my annual renewal.  

2 very separate departments and nothing has been mentioned on permission to stay or 90-day reporting, and very recently!!
Also, many people's personal allowances exceed income brought in and yes, no new forms and also been told by my local Revenue, you simply do not need to file.
In any case, there are not enough boxes for all the allowances available and asked "Have you employment in Thailand"
No I do not, so again, no need to file a tax form.
 

[jwest10]

1 hour ago, jwest10 said:

 

Strange goings on and modern  technology!!!

 

 

[ukrules]

8 hours ago, thjames007 said:

It looks like they referring to tax resident.  Not just Thais.   While the rules aren't clear it will apply to all "tax residence" (ie 180 day or more in year) 

 

Of course they are.

 

[ukrules]

6 hours ago, kuzmabruk said:

Is this why you live in Thailand?  Did you tell that to your home country revenue department?  And now you are wanted for tax evasion.   I would think your home country prison would be more comfortable that the Thai prison that you might be visiting.   Tax evasion is a serious crime even in Thailand.   Be careful.  

 

 

I came to live in Thailand for only 1 reason, I could avoid paying any and all tax. I've always said the one thing that will make me leave is if they ever attempt to tax me - hence I am sitting in an apartment in Phnom Penh right now.

They're not getting a single Baht from me.


I know how to do it 100% legally, it's not evasion if it's avoidance and there's nothing wrong with avoidance. Not yet anyway.